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Senate passes Democrats’ budget plan without GOP votes

June 29th, 2009, 1:32 pm · 51 Comments · posted by BRIAN JOSEPH, Sacramento Correspondent

Senate Democrats joined their Assembly colleagues this afternoon in using a legislative loophole to pass a budget solution and tax increase without a single Republican vote.

Gov. Arnold Schwarzenegger, however, reiterated that he will veto the Democrats’ plan, passed with a simple majority. Typically, budgets and tax increases require a two-thirds majority.  With a little more than a third of the State Legislature controlled by Republicans, that means Democrats need some GOP support to get their agenda through.

However, in December, Senate Leader Darrell Steinberg, D-Sacramento, uncovered a loophole that would allow Democrats to increase taxes while decreasing others, so that the net impact is zero.This move allows Democrats to pass a budget and tax increases on a simple majority vote.

The Democrats plan was vetoed by the governor in December, but Democrats have held the idea of a simple majority vote in reserve for a rainy day. And today, they say, it’s pouring. If something isn’t done to address the $24.3 billion budget deficit by the end of tomorrow, the state will begin issuing IOUs. 

In an attempt to avoid the IOUs, the Democrats pulled the simple majority card late Sunday, when the Assembly passesd the budget plan.

With the clock ticking, Republicans have rejected the Democrats’ plan because it includes tax increases and it falls short of addressing the entire deficit.

The governor shares the Republicans’ opposition and has repeatedly said - Sunday, today, last week - that he will veto the Democrats’ simple majority plan.

Steinberg, the Senate Leader, concluded the voting this morning by saying he’s still willing to work with the GOP and the governor to craft a full solution to the deficit before the IOUs go out. At 4 pm today, the Senate is scheduled to vote on a budget package that would delay the issuance of IOUs for several weeks. The package was approved in the Assembly last week, but it was previously blocked by Senate Republicans.

The Senate will try to pass it this afternoon, even though the governor has said he’ll veto it.

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 51 Comments

  • Some Jerk says:

    The governor is dead to me, but if his body becomes a speed bump on the highway to more taxes, I’ll drink to that.

    • A53fly says:

      You must be on welfare or a government employee, pretty much the same imho. People are fed up with the scare tactics and tax hikes.

      “Give a man a fish and he eats for a day. Teach a man to fish and he registers republican.”

      *Vote LIBERTARIAN

  • Margaret says:

    Boy they sure dont get it do they More taxes is not what we want or need many of us dont have enough has it is and we are being taxed to death. People are sick of it. Politicians are so out of touch with reality. this is not going to fix a thing.

  • Sunflower says:

    Tell them to all get second jobs, that is what I have and would have to do.

  • Gentwelve says:

    To those who wish to raise our taxes might be prudent to re-evaluate your decision to circumvent the law. It is not going to look good at your trial.

  • wheresthebeef says:

    You would expect this from a third world banana republic, not the state that is the seventh biggest economy in the world.

    I have not heard of any massive cuts, layoffs, reworked pension/healthcare plans for state workers, cuts in benefits to illegals. How about starting there…that would probably solve most of the budget problem.

    Sorry, tax increases are not on the table this time around. My son’s third grade class could do a better job than these buffoons in Sacramento.

    If this keeps up, pitchforks and torches might not be far from reality!

    • popcorn says:

      The big budget items are the dems core programs. Government mandated and legislative redistribution of wealth. What they call social services. Those services are over 60% of State spending. The next is environmental, huge tax on society.

  • OC Taxpayer says:

    Time for a citizen’s march on Sacramento. These idiots just don’t get it. Cut all government employee compensation and all aid to illegal immigrants now.

  • 417InOC says:

    In good times, the Democrats want to raise taxes. In bad times, the Democrats want to raise taxes. Does anyone see a pattern here? Do you think it’s time for a major overhaul within the Senate and Assembly?

  • irvinesbest says:

    Whether it’s the federal government or Sacramento, those who are so eager to raise our taxes have two purposes in mind: 1) help their friends (like the ones who donated money), and 2) punish their enemies.

    Sacramento doesn’t just need a house-cleaning…it needs to be fumigated in order to get rid of all the vermin that resides there.

  • TimP says:

    I think the message sent on May 19 (election) obviously fell on deaf ears in Sacramento. The voters don’t want new taxes, we’ve reached our limit. Cut services.

    Work with the Feds to get laws changed so we can eliminate services to Illegal Aliens.

  • ocobserver says:

    Law makers turning into law breakers when they can’t play by the rules and get the votes they need to pass new taxes. How does that make us better than a 3rd world banana republic? It doesn’t. Don’t count on Schwartzenegger. He’s been know to flip-flop before. So why do we have to obey the rules if they (the law-makers) don’t? Maybe someone should pose that relevant question?

  • hbrealist says:

    I want to lose my citizenship and become an “undocumented worker” i suppose that’s the only way to make a decent buck without givin it all back to the people who dont deserve it.

  • unemployed says:

    Everyone PLEASE remember this when it comes time for us to vote. VOTE these idiots out.

  • Grunt41 says:

    How can this loophole work if they are trying to address the $24 billion plus short fall if the loop hole is intended only for the budget neutral, ergo a dollar less here for a dollar more there?

    This gimmick is specious, and everyone knows it. Contrary to what the Democrats seem to think, we are all not victims of LA Unified, and other like districts, and cannot be fooled.

  • Rick says:

    The quickest way to eliminate the illegal immigration problem is to stop the state funding of illegal immigrants! Duh! People in California spoke
    loud and clear on May 19. Alarmingly voters preferences are just ignored if democrats don’t get their way. Look at the money and jobs we are throwing away on illegal immigration. Doesn’t the word I L L E G A L
    mean what it says. California is quickly becoming the laughing stock of clear minded people around the U.S. How embarrassing!

    • Dawn says:

      I AGREE! Illegal- meaning : not lawful..so in other words the taxpayers money is being used illegally by the government to support the illegal immigrants…Hitler schwarzenegger is a joke to this state…

  • Poorsoul says:

    Why is it when there is a budget issue, it is the working class who is first to be hit? If there is a problem in (most) businesses, it is the Executive Officers who take the first pay cuts. I guess government is different, suppress those who do the real work! Maybe the assembly should take the pay cuts and work for minimum wage!

    Oklahoma has passed a law banning support to illegal aliens, the aliens have left and there is abundance of jobs and work. Maybe California should take note before the only one’s living here are illegal aliens. Then where is the money going to come from.

    Welcome to California, home of the Boys Business Club!!

    • mary says:

      I totally agree……

      These people are way out of touch with what the people want and need

  • Poorsoul says:

    Maybe Mary Cary was right! Tax voluntary plastic surgery. Think of all the taxes we would raise from Botox alone!!!!

  • Brian says:

    Why are these democrats so stupid? They know that it’s illegal and they know that they governor will veto their illegal passage of a tax increase. They care so little about the law, that they do it anyway. These people should be removed from office! They care more about funneling money to the unions that they are willing to break the law to do so.

  • OhBoy says:

    Good the the Governor will Veto. The Democrats are fat bigs!

  • hbrealist says:

    come on guys, havent you figured it out yet? our vote means about as much as 1 grain of sand on a beach. unless you are a millionaire or an “undocumented worker/undocumented student” your opinion doesnt mean squat to the people already in office. sad to say, but it isnt going to change. you can blame republicans or democrats, but all you are doing is wasting your breath. things will not change, regardless of who is in office.

  • SloRydr says:

    It’s time to do away with the “full-time” state elected representatives in Sacramento. Return to the part-time positions where they take a leave of absence from their full-time jobs to work in Sacramento. Cut costs too, with no expenses, office staffs, vehicles, trips to Europe to study something or other, no medical coverage and no lifetime retirment for serving in one term….etc., etc., etc.

    Maybe then realism would set in on how the rest of us live day-to-day with their taxes and special bond issues.

    I’m all for starting the resolution/petition to change our government to government by the people.

  • Corey K says:

    I’m willing to bet the average California resident could balance the budget, and put more money back in to the school system. There is so much waste and spending in the wrong places its disgusting.

  • OCMOM says:

    Unless we clean house in both the State Legislature and the Senate, this will continue. It is past time to elect a whole new government. One that is commited to reducing spending , taxes and removing all benifits to anyone here illegally.

  • justsayin says:

    Seems Republicans do the most damage to the economy and then blame the Democrats when they try to fix it. Of course no one wants more taxes…I don’t want to ever have to work again either. Not saying it’s the answer, but George and Arnold have run us into the ground.

    • loufca says:

      Remeber, according to the constitution, it is the House that establishes a budget and then executes it. Read state and federatl constitutions.

  • sangell3 says:

    I’ve got a feeling the Governor is going to have to call up the National Guard to deal with the clowns in the legislature.

  • It's Tax Time! says:

    If we want California to be the envy of the world, we need to pay for it. The best schools, cleaner environment, eliminate all cars and roads and replace them with high speed rail everywhere. That is all expensive though.

    We need to give our leaders in Sacramento all the resources (money) they need and they will give us back anything that is left over.

    If we all could pay just a little bit more… all will be well!

    • bobbyc says:

      Who on Earth envy’s a state that gives free services to millions of who don’t pay taxes?

      We are a JOKE to the rest of this planet.

      It time to revolt!

    • Les says:

      We are the “laughing stock” of the World, as we spend over $13 Billion a year on services and benefits for illegal immigrants. I’m assumiing, that your post was an attempt at humor.

  • EatingFool says:

    California has been on this slow decline for years and now people are starting to wake up to the realities they’ve reaped from their years of inattention. The state economy is in the toilet and isn’t going to be fixed with the myopic people who run our state but sadly, their constituents won’t vote them out thus we’re going to suffer greatly for years to come. California is the laughing stock of the nation and precious nothing is being done to save her. At least Michael Jackson had some sort of weak pulse when help arrived but we just need someone to announce our time of death.

  • bobbyc says:

    I have a STRONG suspicion that there will soon be a Republican majority in Sacramento.

    Even registered California Democrats will start voting for state Republican’s, to avoid going into personal bankruptcy at this point, and I am one of them.

    We CAN NOT afford more taxes here in California!

    It’s going to start getting ugly here soon!!!

    • Cliff says:

      Republicans are just as bad as the democrats. Remember THEY were the ones that voted for the tax increase too.

      It’s time for an Independent party to take office!

      • jack kreg says:

        How much will Repub’s raise taxes if they had a 2/3’s majority,

        eg, its the Dems who were and are pushing massive new CA taxes.

    • SDLAD says:

      bobbyc, I wish I could support your strong suspicion. The Democrats and their unholy alliance with the unions (money) and media (propaganda) will make sure that there are more Democrats elected. I am betting that there will be more than enough democrats elected in the next election cycle to nullify the 2/3 requirement for passing the budget. California under Democrats is doomed.

      • bobbyc says:

        It will only backfire on them, as the only people right now who are willing to vote for an over-bloated greedy Senator who wants to increase taxes on California citizens, are non-citizens, who don’t pay taxes.

        It’s going to be tough being a Senator in Sacramento with a bunch of IOU’s, and a few Paso’s.

  • Cliff says:

    California = Detroit soon!

    All the smart people are leaving the state. All that will be left are the multi-millionaires, the dumb, & the Illegals.

  • gouscoc says:

    “Gov. Arnold Schwarzenegger, however, reiterated that he will veto the Democrats’ plan, passed with a simple majority. Typically, budgets and tax increases require a two-thirds majority.”

    Typically? Who writes this stuff -

    Constitutionally, the government must get a 2/3 approval on all tax increases - since it did not, it did not PASS.

  • jack kreg says:

    CA is sooo far gone, recent state worker salary for local school district is $250,000, thats outrageous.
    We need a 4 step plan;
    1-Cut all state salary’s over $100,000 to under $100,000, like $99,000, 1000’s of state workers currently “EANRING” over $100,000,
    2-cut all state worker salary’s now under $100,000 by 10%,
    3-eliminate 10% of all state jobs, and freeze hiring for 5 years,
    4-convert state retirement to defined contribution, currently 1000’s of retired state workers “RECEIVE” retirement income in excess of $250,000 plus free healthcare for life.
    The state is out of control, and must be heavily cut down to a reasonable size.

  • BR says:

    POLITICS = GAMES

    All games. We ALL know there can much more cut from spending. There need to be more reductions in admin staff, and reduction in the “give-a-ways” that they retain after being cut loose.

    Come on, the only way we are going to get this straightened out is to first reduce payrolls and the payment legacies they produce. Let’s have government employment follow the same rules as the private sector and stop the free lunches that the taxpayers are now stuck with.

    It is that simple!

  • John P says:

    Time for a good ol fashioned revolt. This is getting rediculous. Live within your means California. No money, no services. These yahoos are nowhere close to dealing with this issue, until they stop pandering to the unions thugs and cut government waste.

    LIVE WITHIN YOUR MEANS!!!!!

  • Union and Proud of it says:

    Before the Unions stood up for the common worker, a normal shift as 12 hours, no insurance, no retirement, and no worker rights. Death by accidents on the job was commonplace. You only had two choices, take it, or starve to death. Things are better now, 40 hour work week, holidays and vacations, retirement plans and medical insurance. If you do away with the unions, you could go back to the old days. . .

    Why would anyone earning less than 100,000 a year vote Republican?–they don’t care about you or what happens to you. It is all about doing away with regulations so their millionaire friends can get richer off of your sweat. Granted, the Democrats might get more votes if they stopped pushing such a liberal agenda–but Republican? ?? Why ? ? ?

    • IncognitoMosquito says:

      Unions served a good purpose in the past but they’re very much antiquated now. Those worker rights’ are either covered by OSHA or state laws. The way unions work now is they pay lobbyists who pay for democrats to pretend to give a crap so that union workers can pretend to work hard.

    • gouscoc says:

      you know, ya did fine until the uneducated, tripe you call a second paragraph.

  • IncognitoMosquito says:

    Democrats and Republicans both know cutting aid for illegal immigrants would save a ton of money, it could quite possibly be THE most economically smart thing to do. But anyone who speaks out against illegal immigrants would be committing political suicide. They would be (erroneously) accused of being a bigot. There’s absolutely no way any politician will do the right thing and stand up for the rights of those who are here legally. We’re going to hell in a hand basket my friends.

  • james says:

    TIME FOR A 3RD PARTY….. THE PARTY OF NO NEW TAXES….THE PARTY OF CUTTING SPENDING… THE PARTY THAT DOES NOT GET INVOLVED AND HUNG UP ON B.S SOCIAL AGENDA. THE PARTY THAT INCLUDES ALL PEOPLE, WHITE, BLACK,ASIAN, HISPANIC,GAY AND STRAIGHT.

    TIME TO THROW ANYONE OUT OF OFFICE THAT VOTES TO INCREASE ONE MORE DIME OF TAXES.

    WE NEED NEW PEOPLE AND WE NEED A NEW STATE GOVERNMENT AND NEW FEDERAL REPRESENTATIVES. NO MORE CAREER POLITICIAN OF THE PAST.

    I AM MAD AS HELL AND NOT GOING TO TAKE IT ANYMORE!

    SACRAMENTO AND WASHINGTON D.C ARE SO OUT OF TOUCH WITH THE CITIZENS IT MAKES YOU SICK TO YOUR STOMACH.

  • ocobserver says:

    I’m surprised that we haven’t heard more news on these bills passing the assembly and senate. John & Ken are on vaca so nobody’s screaming about it. Let’s see if Arnold stands by his word and vetoes the bills since they were passed with a 1/2 majority versus a 2/3rd’s majority. If he caves on this one he is going to be dogmeat with the people of the State he governs. But maybe he doesn’t care. Who knows? There is no doubt there are bigtime deals being discussed in the backroom. Will Arnold cave? That’s the question.

  • Les says:

    Look for moe sneaky accounting tricks, as the budget implodes. I.O.U. anyone?

  • Heather P says:

    They should be raising taxes on the right people, geez, those who earn $50,000 pay the same rate as someone who earns $900,000. How awful is it to ask we go back to Reagan’s tax brackets? You people just don’t get it, we did this to ourselves by voting for prop. 13, all the special ballot initiatives but when it comes to pay for it? All you do is whine.

    And if we really wanted to fix the undocumented worker issue, if people in Sacramento wanted to, they would fine employers, but they don’t, because those people put them in office in the first place.

    Wake up, it’s more complicated than just don’t raise my taxes.